Einhorn Squeezes Apple for Its Cash

By

Telis Demos

Feb. 11, 2013 7:22 p.m. ET

Behind David Einhorn's protestations on Apple Inc. is a novel way to return cash to shareholders.

Last week Mr. Einhorn, the billionaire manager of hedge fund Greenlight Capital Inc., proposed that Apple issue a special class of stock, which he called "perpetual preferred," that would carry a high dividend yield.

It is a new solution to an old problem, that of cash-heavy companies. U.S. companies have been retaining...